If one day a terrible disease were to wipe out over one-half of the world's lime trees, which of the following would likely result?
A)The supply curve of lime juice would shift downward and to the right.
B)The supply curve of lime juice would shift upward and to the left.
C)The demand curve for lime juice would shift to the right.
D)The demand curve for lime juice would shift to the left.

Question

Quizplus · Accepted Answer

A decrease in supply due to the disease would cause the supply curve for lime juice to shift upward and to the left, resulting in a higher equilibrium price and a lower quantity supplied. The demand curve for lime juice may or may not shift depending on the extent to which consumers are willing to substitute other citrus fruits for limes.

If One Day a Terrible Disease Were to Wipe Out